AFPM ’13: RGP tightness could support higher prices

26 March 2013 14:17[Source: ICIS news]

SAN ANTONIO, Texas (ICIS)--Tightness in the US refinery-grade propylene (RGP) market could support higher prices than the market is experiencing, a producer said on Tuesday on the sidelines of the International Petrochemical Conference (IPC).

The producer said that based on supply tightness and strong alkylation values for gasoline production, US RGP prices should be 4-5 cents/lb ($88-110/tonne, €69-86/tonne) higher.

"We should be seeing RGP in the 60s," the producer said. "Right now, though, all the buyers are out of the market."

US spot RGP prices were in the 56-57 cents/lb in late March as demand has softened from the polymers market.

"We'll see prices start to rebound once the polypropylene guys run out of inventory," the producer said.

Hosted by the American Fuel & Petrochemical Manufacturers, the IPC continues through Tuesday.